No growth in latest quarter but Pernod Ricard upbeat on rest of fiscal 2024 - results data

Three-month sales to end of March flat at EUR2.35bn (US$2.92bn)
Fiscal year-to-date top-line declines 2% to EUR9.51bn
China and US down while India and GTR perform well in both Q3 and YTD

The company’s sales in the three months to the end of March, announced today, showed no growth on the corresponding period last year. As a result, the top-line for the first nine months of fiscal 2024 dipped by 2%, totalling EUR9.51bn (US$10.17bn).

Despite the stagnant quarter, the performance is an improvement on H1’s 3% sales decline.

In volumes terms, Pernod Ricard noted an increase from the quarter of 1% while the nine months collectively were down by 4%.

The main drags in the latest three months came from China (down 12% in Q3) and the US (-11%), as the former exhibited “continuing soft consumer sentiment leading to a weak Chinese New Year” and the latter dealt with ongoing consolidation of stock levels for spirits in general. On the plus side, India (+8% in Q3) is exhibiting a “strong consumer demand for spirits” and the group’s global travel retail operations soared by almost 40%, albeit against weak year-on-year comparables, as Chinese traveller numbers continue to recover.

On the brands side, Jameson gained yet more Irish whiskey market share in US as a result of the “largest ever [marketing] investment” around Saint Patrick’s Day, with the Noblige expression of cognac flagship Martell delivering a “solid performance” in China.

“Building on very strong fiscal 2023 and robust nine-month fiscal 2024 performances, Pernod Ricard remains confident in its medium-term financial framework of +4% to +7% top-line growth,” the company said. “In a challenging environment, Pernod Ricard expects … dynamic Q4 net sales, improving versus nine-month (performance), leading to broadly stable full-year … sales.”